passwella.
Menu

WAEC Financial Accounting 2019 Question 18

Question 18

Interpretation of Accounts

Use the following information to answer questions 17 and 18.
Opening capital: D 10,800
Drawings: D 2,500
Trade creditors: D 2,560
Trade debtors: D 2,880
Cash in hand: D 1,000
Net profit: D 6,000
The working capital is

  1. A.D 6,440.
  2. B.D 3,880.
  3. C.D 3,500
  4. D.D 1,320.
Show the answer and explanation

Answer: D (D 1,320.)

Explanation

(2,880 + 1,000) − 2,560 = D 1,320.